500+ queues? Oh, my. I can't find anything to say it's not possible, but at best it'll be very difficult to maintain.
If dealers are outside your network, I'd imagine that they'd connect to you via HTTP, so a input queue per dealer would be out. You'd have clustered HTTP listeners to handle incoming requests.
You might have a chance at a pool of message driven beans for each dealer, but even 1MB per queue/MDB pair would mean you'd have to have 0.5-1GB just to have the queues. That's on top of all the other requirements for your Java EE app server.
Sounds like a configuration/management nightmare to me.
Why do you think you need the queues? Is it 'guaranteed delivery', reliability, asynchronous processing, etc. that attracts you?
Why does each dealer need their own queue? Is the processing different for each dealer?
What kind of message volume per dealer have you observed? What kind of growth do you expect? How large is each message? What is the payload of the message - XML, JSON, or something else?
I would make sure that I had explored several alternatives, none of which required queues, before I took this route. I think it's suspect.